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“CBRE had an excellent start to 2018 with double-digit growth in revenue
and a 20% increase in adjusted earnings per share,” said Bob Sulentic,
CBRE’s president and chief executive officer. “Our performance for the
quarter – paced by growth in global occupier outsourcing, capital
markets and our Asia Pacific business – results from the execution of
our strategy, which is centered on delivering differentiated client
outcomes around the world, as well as the attractiveness of our sector.”

“While we caution against extrapolating first quarter results, we are
tracking slightly ahead of our full-year 2018 guidance. First quarter
results were ahead of our expectations across revenue, margins, and
earnings and we continue to see solid momentum in our business. The
first quarter is seasonally our slowest of the year and we will provide
further commentary next quarter,” he continued.

Mr. Sulentic concluded: “CBRE continues to benefit from the strong
secular trends that support our industry. These trends include growing
occupier appetite for outsourced real estate services, increasing
institutional capital allocation to the commercial real estate asset
class, and the continued consolidation in our sector around the leading
globally capable service providers.”

“Our strategy is aimed squarely at making the most of these macro
trends, and we are sustaining progress on many fronts – from digital
technology investments to Client Care initiatives to enhancing our
talent base and better connecting our people around the world. The
successful execution of our strategy will ensure that we continue to
produce outcomes for our clients that others find difficult to
replicate.”

On a GAAP basis, net income and earnings per diluted share increased
10% to $150.3 million and $0.44 per share, respectively. Adjusted net
income4 for the first quarter of 2018 rose 22% to $186.2
million, while adjusted earnings per share improved 20% to $0.54 per
share.

The adjustments to GAAP net income for the first quarter of 2018
included $29.0 million (pre-tax) of non-cash acquisition-related
amortization and $28.0 million (pre-tax) write-off of financing costs
related to the redemption in March 2018 of $800 million principal
amount of the company’s 5% bonds due 2023. These costs were partially
offset by $10.0 million (pre-tax) reversal of net carried interest
incentive compensation and a net tax benefit of $11.5 million
associated with the aforementioned pre-tax adjustments. The
adjustments also include a $0.5 million net charge5
attributable to an update to the provisional estimated tax impact of
the 2017 Tax Cuts and Jobs Act initially recorded in the fourth
quarter of 2017.

EBITDA6 increased 13% (11% local currency) to $357.8
million and adjusted EBITDA increased 11% (8% local currency) to
$347.8 million. Adjusted EBITDA margin on fee revenue was 15.3% for
the three months ended March 31, 2018.

First-Quarter 2018 Segment and Business Line
Review1

The following tables present highlights of CBRE segment performance
during the first quarter of 2018 (dollars in thousands):

Americas

EMEA

APAC

% Change from Q1

2017

% Change from Q1

2017

% Change from Q1

2017

Q1 2018

USD

LC

Q1 2018

USD

LC

Q1 2018

USD

LC

Revenue

$

2,850,224

8

%

8

%

$

1,181,254

31

%

16

%

$

495,459

23

%

17

%

Fee revenue

1,268,734

12

%

12

%

609,367

27

%

13

%

251,783

15

%

10

%

EBITDA

225,843

5

%

4

%

36,946

11

%

-2

%

33,880

46

%

41

%

Adjusted EBITDA

225,843

0

%

0

%

36,946

4

%

-8

%

33,880

46

%

40

%

Global Investment Management

Development Services (7)

% Change from Q1

2017

% Change from Q1

2017

Q1 2018

USD

LC

Q1 2018

USD

LC

Revenue

$

123,690

38

%

30

%

$

23,325

64

%

64

%

EBITDA

39,721

-3

%

-8

%

21,446

538

%

538

%

Adjusted EBITDA

29,692

15

%

8

%

21,446

538

%

538

%

CBRE produced strong revenue growth in its three global regions in the
first quarter. APAC (Asia Pacific) saw revenue increase 23% (17% local
currency) with outsized growth in India and Japan. EMEA (Europe, the
Middle East & Africa) revenue also increased strongly, rising 31% (16%
local currency), driven by France, Italy, the Netherlands and the United
Kingdom. Americas revenue was up 8% (same local currency), supported by
growth in Canada, Mexico and the United States.

Global occupier outsourcing once again achieved robust revenue growth,
as the secular outsourcing trend continued to be a powerful growth
catalyst. Revenue increased 16% (12% local currency) and fee revenue
rose 26% (18% local currency). Growth was strong across geographies,
notably in India, the United States and several continental European
countries. Acquisitions contributed 2% (same local currency) to the
revenue growth rate and 5% (same local currency) to the fee revenue
growth rate in the current quarter.

Global property sales revenue rose 15% (11% local currency), as CBRE
continued to gain market share. Americas sales revenue rose 14% (same
local currency), with double-digit growth in Canada and the United
States. APAC sales revenue increased 14% (8% local currency), driven
largely by Japan, and EMEA sales revenue rose 16% (3% local currency),
led by Germany. This growth followed a 16% (local currency) increase in
EMEA sales revenue in the first quarter of 2017.

For the first quarter, CBRE’s U.S. investment sales market share rose
more than 100 basis points to 14.9%, according to Real Capital Analytics
(RCA).

Strong mortgage origination activity supported the continued growth of
the $184 billion loan servicing portfolio, which increased 23% from the
first quarter of 2017. Recurring revenue from loan servicing increased
15% (14% local currency).

Leasing revenue rose 8% (5% local currency), with notable strength in
international markets. EMEA and APAC achieved growth of 34% (19% local
currency) and 18% (13% local currency), respectively. France, India and
the United Kingdom were standouts during the quarter. Americas leasing
revenue edged up 2% (1% local currency).

Property management services produced revenue and fee revenue growth of
11% (7% local currency) and 18% (13% local currency), respectively. Fee
revenue rose by double digits in all three global regions and was
supported in part by the continued strong growth in the investment fund
administration business.

Valuation revenue rose 8% (3% local currency), paced by EMEA.

Adjusted EBITDA for CBRE’s real estate investment businesses rose
significantly, increasing $21.9 million on a combined basis. Growth was
driven by large asset sales in Development Services (which were reported
in equity income from unconsolidated subsidiaries) and higher carried
interest in Global Investment Management.

The in-process Development Services portfolio increased to a record
$7.7 billion, up almost $900 million from year-end 2017, reflecting
the significant conversion of pipeline deals. The pipeline increased
$300 million during the first quarter.

The company’s first quarter earnings conference call will be held today
(Wednesday, May 2, 2018) at 8:30 a.m. Eastern Time. A webcast, along
with an associated slide presentation, will be accessible through the
Investor Relations section of the company’s website at www.cbre.com/investorrelations.

The direct dial-in number for the conference call is 877-407-8037 for
U.S. callers and 201-689-8037 for international callers. A replay of the
call will be available starting at 1:00 p.m. Eastern Time on May 2,
2018, and ending at midnight Eastern Time on May 9, 2018. The dial-in
number for the replay is 877-660-6853 for U.S. callers and 201-612-7415
for international callers. The access code for the replay is 13678077. A
transcript of the call will be available on the company’s Investor
Relations website at www.cbre.com/investorrelations.

The information contained in, or accessible through, the company’s
website is not incorporated into this press release.

This press release contains forward-looking statements within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, including statements regarding our future
growth momentum, operations, financial performance, market share, and
business outlook. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
company’s actual results and performance in future periods to be
materially different from any future results or performance suggested in
forward-looking statements in this press release. Any forward-looking
statements speak only as of the date of this press release and, except
to the extent required by applicable securities laws, the company
expressly disclaims any obligation to update or revise any of them to
reflect actual results, any changes in expectations or any change in
events. If the company does update one or more forward-looking
statements, no inference should be drawn that it will make additional
updates with respect to those or other forward-looking statements.
Factors that could cause results to differ materially include, but are
not limited to: disruptions in general economic and business conditions,
particularly in geographies where our business may be concentrated;
volatility and disruption of the securities, capital and credit markets,
interest rate increases, the cost and availability of capital for
investment in real estate, clients’ willingness to make real estate or
long-term contractual commitments and other factors affecting the value
of real estate assets, inside and outside the United States; increases
in unemployment and general slowdowns in commercial activity; trends in
pricing and risk assumption for commercial real estate services; the
effect of significant movements in average cap rates across different
property types; a reduction by companies in their reliance on
outsourcing for their commercial real estate needs, which would affect
our revenues and operating performance; client actions to restrain
project spending and reduce outsourced staffing levels; declines in
lending activity of U.S. Government Sponsored Enterprises, regulatory
oversight of such activity and our mortgage servicing revenue from the
commercial real estate mortgage market; our ability to diversify our
revenue model to offset cyclical economic trends in the commercial real
estate industry; our ability to attract new user and investor clients;
our ability to retain major clients and renew related contracts; our
ability to leverage our global services platform to maximize and sustain
long-term cash flow; our ability to maintain EBITDA and adjusted EBITDA
margins that enable us to continue investing in our platform and client
service offerings; our ability to control costs relative to revenue
growth; economic volatility and market uncertainty globally related to
uncertainty surrounding the implementation and effect of the United
Kingdom’s referendum to leave the European Union, including uncertainty
in relation to the legal and regulatory framework that would apply to
the United Kingdom and its relationship with the remaining members of
the European Union; foreign currency fluctuations; our ability to retain
and incentivize key personnel; our ability to compete globally, or in
specific geographic markets or business segments that are material to
us; our ability to identify, acquire and integrate synergistic and
accretive businesses; costs and potential future capital requirements
relating to businesses we may acquire; integration challenges arising
out of companies we may acquire; the ability of our Global Investment
Management business to maintain and grow assets under management and
achieve desired investment returns for our investors, and any potential
related litigation, liabilities or reputational harm possible if we fail
to do so; our ability to manage fluctuations in net earnings and cash
flow, which could result from poor performance in our investment
programs, including our participation as a principal in real estate
investments; our leverage under our debt instruments as well as the
limited restrictions therein on our ability to incur additional debt,
and the potential increased borrowing costs to us from a credit-ratings
downgrade; the ability of our wholly-owned subsidiary, CBRE Capital
Markets, Inc., to periodically amend, or replace, on satisfactory terms,
the agreements for its warehouse lines of credit; variations in
historically customary seasonal patterns that cause our business not to
perform as expected; litigation and its financial and reputational risks
to us; our exposure to liabilities in connection with real estate
advisory and property management activities and our ability to procure
sufficient insurance coverage on acceptable terms; liabilities under
guarantees, or for construction defects, that we incur in our
Development Services business; our and our employees’ ability to execute
on, and adapt to, information technology strategies and trends;
cybersecurity threats, including the potential misappropriation of
assets or sensitive information, corruption of data or operational
disruption; changes in domestic and international law and regulatory
environments (including relating to anti-corruption, anti-money
laundering, trade sanctions, currency controls and other trade control
laws), particularly in Russia, Eastern Europe and the Middle East, due
to the level of political instability in those regions; our ability to
comply with laws and regulations related to our global operations,
including real estate licensure, tax, labor and employment laws and
regulations, as well as the anti-corruption laws and trade sanctions of
the U.S. and other countries; our ability to maintain our effective tax
rate, including during 2018 as we continue to assess the provisional
amount recorded based upon our best estimate of the tax impact of the
Tax Cuts and Jobs Act (Tax Act) enacted into law on December 22, 2017 in
accordance with our understanding of the Tax Act and the related
guidance available; changes in applicable tax or accounting
requirements, including the impact of any subsequent additional
regulation or guidance associated with the Tax Act; and the effect of
implementation of new accounting rules and standards (including new
lease accounting guidance which will be effective in the first quarter
of 2019).

Additional information concerning factors that may influence the
company’s financial information is discussed under “Risk Factors,”
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations,” “Quantitative and Qualitative Disclosures About Market
Risk” and “Cautionary Note on Forward-Looking Statements” in our Annual
Report on Form 10-K for the year ended December 31, 2017, as well as in
the company’s press releases and other periodic filings with the
Securities and Exchange Commission (SEC). Such filings are available
publicly and may be obtained on the company’s website at www.cbre.com
or upon written request from CBRE’s Investor Relations Department at investorrelations@cbre.com.

The terms “fee revenue,” “organic fee revenue,” “adjusted net income,”
“adjusted earnings per share” (or adjusted EPS), “EBITDA” and “adjusted
EBITDA,” all of which CBRE uses in this press release, are non-GAAP
financial measures under SEC guidelines, and you should refer to the
footnotes below as well as the “Non-GAAP Financial Measures” section in
this press release for a further explanation of these measures. We have
also included in that section reconciliations of these measures in
specific periods to their most directly comparable financial measure
calculated and presented in accordance with GAAP for those periods.

1 In the first quarter of 2018, we adopted new revenue
recognition guidance. Certain restatements have been made to the 2017
financial statements to conform with the 2018 presentation.

3 Fee revenue is gross revenue less both client reimbursed
costs largely associated with employees that are dedicated to client
facilities and subcontracted vendor work performed for clients. Organic
fee revenue further excludes contributions from all acquisitions
completed after first-quarter 2017.

4 Adjusted net income and adjusted earnings per share (or
adjusted EPS) exclude the effect of select charges from GAAP net income
and GAAP earnings per diluted share as well as adjust the provision for
income taxes for such charges. Adjustments during the periods presented
included non-cash amortization expense related to certain intangible
assets attributable to acquisitions, integration and other costs related
to acquisitions, write-off of financing costs on extinguished debt and
certain carried interest incentive compensation reversals to align with
the timing of associated revenue. Adjustments also included an update to
the provisional estimated tax impact of U.S. tax reform initially
recorded in the fourth quarter of 2017.

5 In December 2017, the Securities and Exchange Commission
(SEC) staff issued Staff Accounting Bulletin No. 118 (SAB 118), Income
Tax Accounting Implications of the Tax Cuts and Jobs Act (Tax Act),
which allows us to record provisional amounts during a measurement
period not to extend beyond one year of the enactment date. The net
charge in the first quarter of 2018 related to an update of the net
provision associated with the Tax Act based upon our reasonable
estimates and interpretation of the Tax Act. We consider certain aspects
of this charge to be provisional and the impact may change due to
additional guidance that may be issued by the U.S. Government as well as
ongoing analysis of our data and assumptions we have made. Our
accounting for the effects of the Tax Act is expected to be completed
within the measurement period provided by SAB 118.

7 Revenue in the Development Services segment does not
include equity income from unconsolidated subsidiaries and gain on
disposition of real estate, net of non-controlling interest. EBITDA
includes equity income from unconsolidated subsidiaries and gain on
disposition of real estate, net of non-controlling interests, and the
associated compensation expense.

CBRE GROUP, INC.

OPERATING RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017

(Dollars in thousands, except share data)

(Unaudited)

Three Months Ended

March 31,

2018

2017

(As Adjusted) (1)

Revenue:

Fee revenue

$

2,276,899

$

1,933,854

Pass through costs also recognized as revenue

2,397,053

2,117,112

Total revenue

4,673,952

4,050,966

Costs and expenses:

Cost of services

3,619,961

3,146,477

Operating, administrative and other

732,235

606,626

Depreciation and amortization

108,165

94,037

Total costs and expenses

4,460,361

3,847,140

Gain on disposition of real estate (2)

18

1,385

Operating income

213,609

205,211

Equity income from unconsolidated subsidiaries (2)

40,179

15,018

Other (loss) income

(4,280

)

4,115

Interest income

3,621

2,411

Interest expense

28,858

34,010

Write-off of financing costs on extinguished debt

27,982

—

Income before provision for income taxes

196,289

192,745

Provision for income taxes

46,164

53,819

Net income

150,125

138,926

Less: Net (loss) income attributable to non-controlling interests (2)

(163

)

1,906

Net income attributable to CBRE Group, Inc.

$

150,288

$

137,020

Basic income per share:

Net income per share attributable to CBRE Group, Inc.

$

0.44

$

0.41

Weighted average shares outstanding for basic income per share

338,890,098

336,907,836

Diluted income per share:

Net income per share attributable to CBRE Group, Inc.

$

0.44

$

0.40

Weighted average shares outstanding for diluted income per share

342,589,810

339,690,579

EBITDA

$

357,836

$

316,475

Adjusted EBITDA

$

347,807

$

313,177

(1)

In the first quarter of 2018, we adopted new revenue recognition
guidance. Certain restatements have been made to the 2017 financial
statements to conform with the 2018 presentation.

(2)

Equity income from unconsolidated subsidiaries and gain on
disposition of real estate, less net income attributable to
non-controlling interests, includes income of $35.2 million and
$10.3 million for the three months ended March 31, 2018 and 2017,
respectively, attributable to Development Services but does not
include significant related compensation expense (which is included
in operating, administrative and other expenses). In the Development
Services segment, related equity income from unconsolidated
subsidiaries and gain on disposition of real estate, net of
non-controlling interests, and the associated compensation expense,
are all included in EBITDA.

CBRE GROUP, INC.

SEGMENT RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2018

(Dollars in thousands)

(Unaudited)

Three Months Ended March 31, 2018

Global

Investment

Development

Americas

EMEA

Asia Pacific

Management

Services

Consolidated

Revenue:

Fee revenue

$

1,268,734

$

609,367

$

251,783

$

123,690

$

23,325

$

2,276,899

Pass through costs also recognized as revenue

1,581,490

571,887

243,676

—

—

2,397,053

Total revenue

2,850,224

1,181,254

495,459

123,690

23,325

4,673,952

Costs and expenses:

Cost of services

2,274,851

960,647

384,463

—

—

3,619,961

Operating, administrative and other

355,271

184,247

77,310

78,315

37,092

732,235

Depreciation and amortization

77,981

18,846

4,681

6,227

430

108,165

Total costs and expenses

2,708,103

1,163,740

466,454

84,542

37,522

4,460,361

Gain on disposition of real estate

—

—

—

—

18

18

Operating income (loss)

142,121

17,514

29,005

39,148

(14,179

)

213,609

Equity income from unconsolidated subsidiaries

3,999

238

194

875

34,873

40,179

Other income (loss)

1,742

89

—

(6,111

)

—

(4,280

)

Less: Net (loss) income attributable to non-controlling interests

—

(259

)

—

418

(322

)

(163

)

Add-back: Depreciation and amortization

77,981

18,846

4,681

6,227

430

108,165

EBITDA

225,843

36,946

33,880

39,721

21,446

357,836

Adjustments:

Carried interest incentive compensation reversal to align with the
timing of associated revenue

—

—

—

(10,029

)

—

(10,029

)

Adjusted EBITDA

$

225,843

$

36,946

$

33,880

$

29,692

$

21,446

$

347,807

CBRE GROUP, INC.

SEGMENT RESULTS—(CONTINUED)

FOR THE THREE MONTHS ENDED MARCH 31, 2017

(Dollars in thousands)

(Unaudited)

Three Months Ended March 31, 2017 (As Adjusted) (1)

Global

Investment

Development

Americas

EMEA

Asia Pacific

Management

Services

Consolidated

Revenue:

Fee revenue (1)

$

1,133,211

$

478,432

$

218,428

$

89,566

$

14,217

$

1,933,854

Pass through costs also recognized as revenue

1,505,995

426,199

184,918

—

—

2,117,112

Total revenue

2,639,206

904,631

403,346

89,566

14,217

4,050,966

Costs and expenses:

Cost of services

2,106,359

728,524

311,594

—

—

3,146,477

Operating, administrative and other

322,368

142,942

68,677

51,522

21,117

606,626

Depreciation and amortization

68,569

15,570

4,314

5,039

545

94,037

Total costs and expenses

2,497,296

887,036

384,585

56,561

21,662

3,847,140

Gain on disposition of real estate

—

—

—

—

1,385

1,385

Operating income (loss)

141,910

17,595

18,761

33,005

(6,060

)

205,211

Equity income from unconsolidated subsidiaries

4,640

501

69

873

8,935

15,018

Other income (loss)

427

(1

)

—

3,689

—

4,115

Less: Net (loss) income attributable to non-controlling interests

(1

)

343

-

1,506

58

1,906

Add-back: Depreciation and amortization

68,569

15,570

4,314

5,039

545

94,037

EBITDA

215,547

33,322

23,144

41,100

3,362

316,475

Adjustments:

Carried interest incentive compensation reversal to align with the
timing of associated revenue

—

—

—

(15,241

)

—

(15,241

)

Integration and other costs related to acquisitions

9,678

2,133

132

—

—

11,943

Adjusted EBITDA

$

225,225

$

35,455

$

23,276

$

25,859

$

3,362

$

313,177

(1)

In the first quarter of 2018, we adopted new revenue recognition
guidance. Certain restatements have been made to the 2017 financial
statements to conform with the 2018 presentation.

Non-GAAP Financial Measures

The following measures are considered “non-GAAP financial measures”
under SEC guidelines:

(i)

Fee revenue

(ii)

Organic fee revenue

(iii)

Net income attributable to CBRE Group, Inc., as adjusted (which we
also refer to as “adjusted net income”)

(iv)

Diluted income per share attributable to CBRE Group, Inc.
shareholders, as adjusted (which we also refer to as “adjusted
earnings per share” or “adjusted EPS”)

(v)

EBITDA and adjusted EBITDA

These measures are not recognized measurements under United States
generally accepted accounting principles, or “GAAP.” When analyzing our
operating performance, investors should use them in addition to, and not
as an alternative for, their most directly comparable financial measure
calculated and presented in accordance with GAAP. Because not all
companies use identical calculations, our presentation of these measures
may not be comparable to similarly titled measures of other companies.

Our management generally uses these non-GAAP financial measures to
evaluate operating performance and for other discretionary purposes. The
company believes that these measures provide a more complete
understanding of ongoing operations, enhance comparability of current
results to prior periods and may be useful for investors to analyze our
financial performance because they eliminate the impact of selected
charges that may obscure trends in the underlying performance of our
business. The company further uses certain of these measures, and
believes that they are useful to investors, for purposes described below.

With respect to fee revenue and organic fee revenue: the company
believes that investors may find these measures useful to analyze the
financial performance of our Occupier Outsourcing and Property
Management business lines and our business generally. Fee revenue
excludes costs reimbursable by clients, and as such provides greater
visibility into the underlying performance of our business. Organic fee
revenue further excludes contributions from all acquisitions completed
after first-quarter 2017.

With respect to adjusted net income, adjusted EPS, EBITDA and adjusted
EBITDA: the company believes that investors may find these measures
useful in evaluating our operating performance compared to that of other
companies in our industry because their calculations generally eliminate
the accounting effects of acquisitions, which would include impairment
charges of goodwill and intangibles created from acquisitions—and in the
case of EBITDA and adjusted EBITDA—the effects of financings and income
tax and the accounting effects of capital spending. All of these
measures may vary for different companies for reasons unrelated to
overall operating performance. In the case of EBITDA and adjusted
EBITDA, these measures are not intended to be measures of free cash flow
for our management’s discretionary use because they do not consider cash
requirements such as tax and debt service payments. The EBITDA and
adjusted EBITDA measures calculated herein may also differ from the
amounts calculated under similarly titled definitions in our credit
facilities and debt instruments, which amounts are further adjusted to
reflect certain other cash and non-cash charges and are used by us to
determine compliance with financial covenants therein and our ability to
engage in certain activities, such as incurring additional debt and
making certain restricted payments. The company also uses adjusted
EBITDA and adjusted EPS as significant components when measuring our
operating performance under our employee incentive compensation programs.

Carried interest incentive compensation reversal to align with the
timing of associated revenue

(10,029

)

(15,241

)

Integration and other costs related to acquisitions

—

11,943

Tax impact of adjusted items

(11,537

)

(8,448

)

Impact of U.S. tax reform

548

—

Net income attributable to CBRE Group, Inc. shareholders, as
adjusted

$

186,224

$

152,265

Diluted income per share attributable to CBRE Group, Inc.
shareholders, as adjusted

$

0.54

$

0.45

Weighted average shares outstanding for diluted income per share

342,589,810

339,690,579

EBITDA and adjusted EBITDA, are calculated as follows (dollars in
thousands):

Three Months Ended

March 31,

2018

2017

(As Adjusted) (1)

Net income attributable to CBRE Group, Inc.

$

150,288

$

137,020

Add:

Depreciation and amortization

108,165

94,037

Interest expense

28,858

34,010

Write-off of financing costs on extinguished debt

27,982

—

Provision for income taxes

46,164

53,819

Less:

Interest income

3,621

2,411

EBITDA

357,836

316,475

Adjustments:

Carried interest incentive compensation reversal to align with the
timing of associated revenue

(10,029

)

(15,241

)

Integration and other costs related to acquisitions

—

11,943

Adjusted EBITDA

$

347,807

$

313,177

(1)

In the first quarter of 2018, we adopted new revenue recognition
guidance. Certain restatements have been made to the 2017 financial
statements to conform with the 2018 presentation.

Revenue includes client reimbursed pass through costs largely associated
with employees that are dedicated to client facilities and subcontracted
vendor work performed for clients, both of which are excluded from fee
revenue. Organic fee revenue further excludes contributions from all
acquisitions completed after first-quarter 2017. Reconciliations are
shown below (dollars in thousands):

Three Months Ended

March 31,

2018

2017

(As Adjusted) (1)

Organic Fee Revenue

Consolidated fee revenue

$

2,276,899

$

1,933,854

Less: Acquisitions

(43,078

)

Organic fee revenue

$

2,233,821

Occupier Outsourcing

Fee revenue (2)

$

712,522

$

567,340

Plus: Pass through costs also recognized as revenue

2,241,557

1,970,133

Revenue (2)

$

2,954,079

$

2,537,473

Property Management

Fee revenue (2)

$

148,129

$

125,747

Plus: Pass through costs also recognized as revenue

155,496

146,979

Revenue (2)

$

303,625

$

272,726

(1)

In the first quarter of 2018, we adopted new revenue recognition
guidance. Certain restatements have been made to the 2017 financial
statements to conform with the 2018 presentation.

(2)

Excludes associated leasing and sales revenue.

CBRE GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

March 31,

December 31,

2018

2017

(As Adjusted) (1)

Assets:

Cash and cash equivalents (2)

$

642,854

$

751,774

Restricted cash

78,959

73,045

Receivables, net

3,121,520

3,112,289

Warehouse receivables (3)

1,161,668

928,038

Property and equipment, net

633,666

617,739

Goodwill and other intangibles, net

4,677,134

4,653,852

Investments in and advances to unconsolidated subsidiaries

228,950

238,001

Other assets, net

1,362,691

1,343,658

Total assets

$

11,907,442

$

11,718,396

Liabilities:

Current liabilities, excluding debt

$

3,258,583

$

3,802,154

Warehouse lines of credit (which fund loans that U.S. Government
Sponsored Enterprises have committed to purchase) (3)

1,148,005

910,766

Revolving credit facility

463,000

—

Senior term loans, net

743,530

193,475

4.875% senior notes, net

592,171

591,972

5.25% senior notes, net

422,487

422,423

5.00% senior notes, net

—

791,733

Other debt

67

24

Other long-term liabilities

860,925

831,235

Total liabilities

7,488,768

7,543,782

Equity:

CBRE Group, Inc. stockholders' equity

4,357,631

4,114,496

Non-controlling interests

61,043

60,118

Total equity

4,418,674

4,174,614

Total liabilities and equity

$

11,907,442

$

11,718,396

(1)

In the first quarter of 2018, we adopted new revenue recognition
guidance. Certain restatements have been made to the 2017 financial
statements to conform with the 2018 presentation.

(2)

Includes $88.7 million and $123.8 million of cash in consolidated
funds and other entities not available for company use as of March
31, 2018 and December 31, 2017, respectively.

(3)

Represents loan receivables, the majority of which are offset by
borrowings under related warehouse line of credit facilities.